HomeMy WebLinkAbout2006/08/22 Item 14
COUNCIL AGENDA STATEMENT
Item 1'-1
Meeting Date 8/22/06
ITEM TITLE:
Resolution Ratifying City staffs action on approving change
orders with Koch-Armstrong General Engineering, Inc. to complete
the "Pavement Rehabilitation Program FY 04/05 Overlay in the City
ofChula Vista, California" project, a component of the 2005 Pavement
Rehabilitation project (STL-31 0) project
Resolution Ratifying City staffs action on approving change
orders with American Asphalt South, Inc. to complete the
"Slurry/Chip Seal Pavement Rehabilitation FY04/05 in the City of
Chula Vista, California" project, a component of the 2005 Pavement
Rehabilitation project (STL-31 0) project
SUBMITTED BY:
Director of Ge/ ServicesC\~.
City Manager :II ,J (4/5ths Vote: Yes _ No X )
REVIEWED BY:
The City of Chula Vista awarded contracts to Koch-Armstrong General Engineering, Inc., for the
"Pavement Rehabilitation Program FY 04/05 Overlay in the City of Chula Vista, California"
project and American Asphalt South, Inc. to complete the "Slurry/Chip Seal Pavement
Rehabilitation FY04/05 in the City of Chula Vista, California" project, in which both projects are
components of the 2005 Pavement Rehabilitation project (STL-310) project.
During the course of construction, unforeseen circumstances caused an increase in quantities for
the overlay project beyond what was anticipated during the preparation of the project
specifications, which resulted in a change order that exceeds the Director of Public Works
authorized limits set per Council Policy No. 574-01 (Attachment A). In addition, streets located
on supplemental List 2 of the slurry seal contract were directed to be completed by City staff.
Said change orders are approximately $9,000 for the overlay portion and approximately $36,000
for the slurry portion of STL-31 O. Staff directed the Contractor to proceed with the work and
prepared a Council Informational Item dated April 21, 2006 (Attachment B) regarding this issue.
It is the intent of staff to request that the City Council ratify the actions taken for this project as
stated in said Council Policy Funds are available in the STL-31 0 CIP to complete all necessary
change orders for both the overlay and slurry seal projects. No additional appropriations are
needed to undertake this work.
Approval of tonight's resolution will ratify staff s action approving the change orders totaling
$45,000 for said projects in accordance with the City Council Policy No. 574-01 and as
presented in the Council Information Item submitted on April 21, 2006.
RECOMMENDATION: That Council adopt the resolutions.
BOARDS/COMMISSION: Not applicable.
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14-
Page 2, Item ~
Meeting Date 8/22/06
DISCUSSION:
The City of Chula Vista awarded contracts for the overlay and slurry/chip seal projects, which
are both components of the City's annual pavement rehabilitation program and consist of the
repair and maintenance of our City streets' pavement surface.
During the course of construction for the overlay project (Attachment C), unforeseen
circumstances (poor subgrade and an increase in dig-out quantities) caused an increase in
quantities beyond what was anticipated during the preparation of the 'project specifications for
the overlay proj ect. Additional areas were repaired due to the failing areas increasing in size,
which were primarily caused by heavy rainfalls earlier in the year.
The above-mentioned construction changes resulted in a change order that exceeds the Director
of Public Works' authorized limits set per Council Policy No. 574-01 Said change order are
approximately $9,000 for the overlay portion and approximately $36,000 for the slurry portion of
STL-31O. Staff directed the Contractor to proceed with the work for the following reasons:
· The postponement of the rehabilitation of the streets would have caused an increase in
dig-outs and cost even more than the approximate $9,000 overage, if conducted at a later
time.
· Delays in authorizing the work prior to obtaining City Council approval would have
exposed the City to substantial claims by the Contractor for remobilization, insurance,
bonds, and construction site maintenance, among other things.
In the case of the slurry seal project, all locations in the Priority I and 2 lists (Attachment D)
were completed. Typically for pavement rehabilitation projects, locations are shown in Priority
I and Priority 2 with the intent to complete Priority 2 locations only if funds remain in the
project after completing Priority I locations. Since a substantial amount of funds remained in the
project to complete all of Priority 1 and the majority of Priority 2 locations, staff directed the
Contractor to complete all locations listed in the contract.
Staff requests that the City Council ratify the actions taken for this project as stated in said
Council Policy The STL-310 Pavement Rehabilitation project, which was funded with $3.5
million in TransNet funds, was created to perform various pavement rehabilitation strategies (i.e.
overlay, asphalt rubber aggregate membrane (ARAM), and slurry seals) throughout the City of
Chula Vista. Funds are available in the STL-310 CIP account to complete all necessary change
orders for both the overlay and slurry seal proj ects without additional appropriations by City
Council.
Approval of the resolutions will ratify staff s action approving the change orders totaling a
maximum of $45,000.00 for said projects in accordance with the City Council Policy No. 574-01
and as presented in the Council Information Item submitted on April 21, 2006.
14-2
Page 3, Item I L1
Meeting Date 8/22/06
Decision Maker Conflicts
Staff has reviewed the property holdings of the City Council and has found no such holdings
within 500 feet of the property which is the subject of this action.
FISCAL IMPACT:
There is no impact on the General Fund and no additional appropriations are necessary as the
funds for these improvements have been provided for as part of the Pavement Rehabilitation CIP
STL-310
SLURRY SEAL COMPONENT OF THE STL-310 PAVEMENT REHAB
PROJECT
Base Construction Cost $988,050.00
Change Order No.1 $134,051.87
TOTAL $1,122,101.87
Contract Plus Contingencies $1,086,855.00
Net Chanl!e ReQuirinl! Council Action $35,246.87
OVERLAY COMPONENT OF THE STL-310 PAVEMENT REHAB PROJECT
Base Construction Cost $519,451.90
Change Order No. I $43,482.80
Change Order No.2 $17,220.00
Final Change Order $27,999.19
TOTAL $608,153.89
Contract Plus Contingencies $600,000.00
Net Chanl!e ReQuirinl! Council Action $8,153.89
Attachment(s):
A. Council Policy No. 574-01
B. Council Information Item dated April 21, 2006
C. Overlay Proj ect Locations
D Priority 1 & Priority 2 Slurry Seal Proj ect Locations
M:\General Services\GS Administration\Council Agenda\STL-310 Overlay\Change Order Al13, 8-S-Q6.doc
14-3
ATTACHMENT __4
COUNCIL POLICY
CITY OF CHULA VISTA
SUBJECT: CHANGE ORDERS - DIRECTOR OF
PUBLIC WORKS
POLICY
NUMBER
574-01
EFFECTIVE
DATE
12-12-00
PAGE
1 of!
ADOPTED BY: Resolution No. 12507 I DATED: 06-03-86
AMENDED BY: Resolution No. 2000-335 (09-26-00), Resolution No. 2000-451 (12-12-00)
RACKGROTJND
During the course of work on many City public works projects, it becomes apparent that certain
changes must be made in the contract to obtain the finished product in its desired form.
PlJRPOSF
Since most of these changes are of a minor nature which do not change the scope of the project or
affect the public health, safety, or welfare, delegating limited authority to approve change orders
would result in significantly expediting these public works projects.
POT.TrY
The Director of Public Works is hereby delegated limited authority to approve change orders for work
being done under City public works contracts, as follows:
1 All change orders, except for those change orders exceeding or causing the exceedence of the
amounts specified herein, shall be processed and approved by the Director of Public Works in
accordance with the applicable project specifications.
2. No individual change order shall increase or decrease the original contract amount by more
than $50,000.
3 The aggregate amount of all change orders shall not increase the contract amount by more than
the amount specified below'
Original Contract
Range
Maximum Aggregate Increase in Change Orders
Up to $100,000
$100,000 to $1,000,000
More than $1,000,000
10% of the original contract amount
$10,000 plus 7% of the original contract amount over
$100,000
$73,000 plus 5% of the original contract amount over
$1,000,000
The Director shall also be authorized to increase the time allowed for contract completion in
association with any change order granted under this policy
4 All change orders involving changes in the scope of project, increases of contract amounts
greater than outlined above or aspects concerning the public health, safety, or welfare, shall be
submitted to the City Council for consideration.
In those cases where the City Manager and Director of Public Works determine that the public health
and safety are involved or a substantial claim could be submitted by the contractor for delays, the City
Manager may exceed the above amounts provided for both individual change orders or the aggregate
amount of change orders. The change order shall be submitted to the Cowlcil at the next regular
Council meeting for ratification.
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AiTACHMENT ,13
-
General Services Department
Informational Item
CT1Y OF
CHULA VISlA
April 21, 2006
File: STL-3l0
TO:
The Honorable Mayor and City Council
Jack Griffin, Director of General Services ~}..
Dave Rowlands,~ Manager
FROM:
VIA:
SUBJECT:
Change Order for (STL-3l 0) Pav=ent Rehabilitation Program
On November 22, 2005, per Resolution No. 2005-383, the City Council awarded the "Pavement
Rehabilitation Program FY04/05 Overlay in the City of Chula Vista, California" project (STL-
310) to Koch-Armstrong General Engineering, Inc. for $519,451.90 The work consists of the
application of Asphalt Rubber Aggregate Membrane (ARAM) seal coat and pavement overlay
on various pavement locations in the City of Chula Vista, California. Work for this proj ect also
includes the following: r=oval/replacement of failed pav=ent, striping, traffic control, and
other miscellaneous work, and all labor, material, equipment, and transportation necessary for
the project. This project includes streets, which were on previous contracts' secondary priority
lists, but were not completed due to insufficient additional funds available to complete additional
locations beyond the priority list.
During the course of construction, unforeseen circumstances (poor sub grade and an increase in
dig-out quantities) caused an increase in quantities beyond what was anticipated during the
preparation of the project specifications. Additional areas were repaired due to the failing areas
increasing in size, which were primarily caused by recent heavy rainfall.
The above mentioned construction situation will result in a change order that exceeds the
Director of Public Works authorized limits set per Council Policy No. 574-01. Staff estimates
that said change order will be in the range of $30,000 to $40,000 Staff has directed the
Contractor to proceed with the work because of the following reasons:
· The postponement of the rehabilitation of the streets will cause an increase in dig-outs
and necessitate additional funds beyond the change order, if not conducted at this time.
· Delays would involve substantial additional claims by the Contractor for remobilization,
insurance, bonds, construction site maintenance, etc.
It is the intent of staff to request that the City Council ratify the actions taken for this project as
stated in said Council Policy (attached). No additional appropriations are needed to undertake
this work.
M:\General Services\Design\STL310\lnfo Item for Change Order Apr1~5c
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RESOLUTION NO. 2006-_
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA RATIFYING CITY STAFF'S ACTION
ON APPROVING CHANGE ORDERS WITH KOCH-
ARMSTRONG GENERAL ENGINEERING, mc. TO
COMPLETE THE "PAVEMENT REHABILITATION
PROGRAM FY 04/05 OVERLAY m THE CITY OF
CHULA VISTA, CALIFORNIA" PROJECT, A
COMPONENT OF THE 2005 PAVEMENT
REHABILITATION (STL-310) PROJECT
WHEREAS, City staff awarded contracts to Koch-Armstrong General Engineering, Inc.
for the "Pavement Rehabilitation Program FY 04/05 Overlay in the City of Chula Vista,
California" project; and
WHEREAS, during the course of construction, unforeseen circumstances caused an
increase in quantities beyond what was anticipated during the preparation of the project
specifications, which resulted in a change order that exceeds the Director of Public Works
authorized limits set per Council Policy No. 574-01; and
WHEREAS, staff directed the Contractor to proceed with the work and prepared a
Council Informational Item dated April 21, 2006 regarding this issue; and
WHEREAS, funds are available in the STL-310 CIP to complete all necessary change
orders and no additional appropriations are needed to undertalce this work.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby ratify City staff s action on approving change orders with Koch-Armstrong
General Engineering, Inc. to complete the "Pavement Rehabilitation FY 04/05 Overlay in the
City of Chula Vista, California" project, a component of the 2005 Pavement Rehabilitation
(STL-310) project.
Jack Griffin
Director of General Services
Presented by
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RESOLUTION NO. 2006-_
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA RATIFYING CITY STAFF'S ACTION ON
APPROVING CHANGE ORDERS WITH AMERICAN
ASPHALT SOUTH, INe. TO COMPLETE THE
"SLURRYICHIP SEAL PAVEMENT REHABILITATION
FY 04/05 IN THE CITY OF CHULA VISTA, CALIFORNIA"
PROJECT, A COMPONENT OF THE 2005 PAVEMENT
REHABILITATION (STL-310) PROJECT
WHEREAS, City staff awarded contracts to American Asphalt South, Inc. for the
"Slmryl Chip Seal Pavement Rehabilitation FY 04/05 in the City of Chula Vista, California"
project; and
WHEREAS, during the course of construction, unforeseen circumstances caused an
increase in quantities beyond what was anticipated during the preparation of the proj ect
specifications, which resulted in a change order that exceeds the Director of Public Works
authorized limits set per Council Policy No. 574-01; and
WHEREAS, funds are available in the STL-310 CIP to complete all necessary change
orders and no additional appropriations are needed to undertake this work.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby ratify City staffs action on approving change orders with American Asphalt
South, Inc. to complete the "Slurry/Chip Seal Pavement Rehabilitation FY 04/05 in the City of
Chula Vista, California" project, a component of the 2005 Pavement Rehabilitation (STL-310)
proj ect.
Presented by
Approved as to fo
Xii7 .
Jack Griffin
Director of General Services
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